Unipro PJSC
Annual Report for 2020

Address of the Chief
Executive Officer

In accordance with the transparent dividend policy approved by Unipro PJSC, the company has made guaranteed dividend payments during 2020 and intends to make them in the future.
Maxim Shirokov
Chief Executive Officer of Unipro PJSC

Dear Shareholders, Investors and Colleagues!

The past year was unusual for both the business and each of us. In 2020, the world was faced with a challenge beyond comparison, i. e. the new COVID-19 coronavirus infection. I would like to acknowledge the contribution of each employee to how our Company overcame this crisis. The speed of decision-making at the management level, the arranging for business processes subject to new circumstances, the readiness of Unipro employees to quickly adapt to the new conditions is exceptional!

Despite the unusual format of work, we maintained our leading positions in the Russian thermal power industry.

The Company is successfully handling the task of ensuring reliable and efficient operation of generating equipment. In 2020, we performed all of our obligations to electric power consumers. During the year, Unipro PJSC carried out significant retooling and modernization of the operating capacities. So, in 2020, the control system was completely updated at power unit No. 5 of Surgutskaya GRES-2, new engines of the main exhaust fan and the flue gas recirculation fan were installed. During the overhaul of power unit No. 2 at Yaivinskaya GRES, the steam collection chambers and boiler gas ducts were replaced. At unit No. 1 of Berezovskaya GRES, a quarter of the heating surface of the boiler convection reheater was replaced.

The repair and refurbishment of Power Unit No. 3 at Berezovskaya GRES reached its final stage: the unit was put into operation in the spring of 2021.

Power unit No. 2 of Surgutskaya GRES-2 was selected to take part in the electric power industry modernization programme in 2020. Let me remind you that as a result of the modernization of the SPU units, the installed capacity of the plant will reach 5,747 MW.

Health and safety issues of our employees and the staff of our contractors are the priority of Unipro PJSC. I would like to emphasize that in 2020 there was no serious industry incidents and the TRIF (Total Recordable Incident Frequency) decreased by 36% from 0.39 to 0.25. In 2020, Unipro PJSC confirmed the compliance of its health and occupational safety management system with the requirements of International Standard for Occupational Health and Safety ISO 45 001:2018. This proves once again that we all treat occupational safety issues with great responsibility.

The Company pays special attention to the issues of environment protection and improving the environmental friendliness of the power equipment of Unipro PJSC. Fish protection structures were put into trial operation at Yaivinskaya GRES and Surgutskaya GRES-2. An important step in reducing the negative impact on the environment was the receipt of a positive opinion of the state expert review for the reconstruction of slime dumps of Surgutskaya GRES-2 in July 2020. In addition, Unipro PJSC is planning to switch over to process rationing at Adverse Impact Class I facilities, which is among the environmental policy priorities. In particular, such indicators have already been achieved at the units of Surgutskaya GRES-2 that were overhauled in 2019-2020. It is significant that the Company has successfully passed the first audit of the certified environmental management system for compliance with ISO 14 001:2015 standard in respect of electric and heat power generation and heat power transportation.

Unipro PJSC pays paramount attention to staff relations. This year, we have created and are successfully using an online platform for training our employees. I would like to emphasize that many human resources management processes, such as recruitment, adaptation and assessment of staff, became online ones. New formats in dealing with universities allowed us to significantly promote the employer’s brand. The coronavirus pandemic did not prevent us from conducting an engagement survey the results of which allow the Company’s management to see the things unbiasedly and to take joint efforts with the employees in order to increase the employee engagement.

Improving the quality of living of people in the regions of the Company’s presence is one of the sustainability priorities of Unipro PJSC. We continue to support educational projects, to render assistance to children’s educational institutions, charitable foundations and healthcare organizations. In 2020, Unipro donated additional funds for fighting the coronavirus infection to the medical facilities of Sharypov (the Krasnoyarsk Territory), Surgut (the Khanty-Mansiysk Autonomous District) and Berezniki (the Perm Territory). E. g., antiviral drugs, masks, protective anti-epidemic suits were purchased at the expense of Unipro, and the Sharypov Regional Hospital received a new ambulance from the Company in November 2020. Despite the difficulties caused by the pandemic, we continued to support cultural events. In 2020, Smolensk hosted the Golden Mask Theatre Festival for the first time with the support of Unipro. For the first time, Moscow hosted the I International Music Festival Energy of Discovery arranged for by our Company and Radio Orpheus.

In 2020, Shaturskaya GRES, the oldest power plant, the first-born of the GOERLO (State Commission for Electrification of Russia) Plan, celebrated its centenary. For a hundred years, the plant has been reliably providing the consumers with electric power and heat and has been developing charitable and environmental projects.

Unipro PJSC intends to continuously improve its approaches to information disclosure, in this regard, the GRI SRS Global Reporting Initiative Sustainability Reporting Standards are applied in this Annual Report for the first time.

2021 is going to be a very challenging year. The Company is faced with important and challenging tasks. First of all, we put into operation the third power unit of Berezovskaya GRES. We are commencing an active stage of modernization of the SPU units at Surgutskaya GRES-2. To improve the reliability of energy supply to consumers and to reduce the carbon footprint, Unipro is going to further modernize the operating efficient steam power equipment.

Unipro is adjusting its strategy in order to diversify its business, to improve the environmental friendliness and to maintain its leading position in the energy market. In particular, we are going to develop renewable energy projects and to build up hydrogen technologies competencies.

I believe that thanks to the supreme professional competence of the employees of Unipro PJSC these objectives will be achieved.

Dear shareholders, On behalf of all the employees of Unipro I would like to express my gratitude for your trust in us. Your active support will enable us to succeed in meeting the Company’s targets.